NVidia Reportedly Will Exit Chipset Business

xav_jones sends along a story from X bit Laboratories claiming that NVidia is ready to quit making chipsets. That story links one from DigiTimes, which reports that NVidia has denied that it's getting out of the business. "[NVidia] is about to quit chipset business, which automatically means that the company's much-hyped multi-GPU SLI technology is either in danger or re-considered. Moreover, several mainboard makers have already ceased making high-end NVidia-based mainboards. [NVidia has]... reportedly decided to quit core-logic business to concentrate on development of graphics processors and following failure to secure license to build and sell chipsets compatible with Intel Corp.'s microprocessors that use Quick-Path Interconnect bus."

Comments

It appears this story is bogus

[SpaceLifeForm]

Link

Nvidia (NSDQ:NVDA) has asked Digitimes for "a full retraction" of a story appearing Friday in the tech journal that claims the Santa Clara, Calif.-based graphics chip maker "has decided to throw in the towel and quit the chipset business."

Link

Nvidia said Friday that there's no truth to a Taiwan report that claims it's exiting the chipset business.

That report was published by Digitimes, a normally fairly reputable IT publication that claimed that Nvidia met with its main motherboard clients this week and asked for support for its next-generation chipsets.

The motherboard makers' response? Silence.

Although such a withdrawal would be highly unlikely, ExtremeTech asked Nvidia for comment. "The story on Digitimes is completely groundless. We have no intention of getting out of the chipset business," said Bryan Del Rizzo, a company representative, in a statement. (The same statement was later resent as an official company statement.)

Re:It appears this story is bogus

[hairyfeet]

Let us look at the facts. 1. The inquirer,in a story I submitted over a day ago and is still rotting in pending BTW,reported that a several vendors are dropping the 790i chipset due to data corruption issues. 2. Nvidia has had a bad run of chips lately,and since the 790i boards are being pulled,it looks like that bad run is across the board(no pun intended). 3. Nvidia makes a BUTTLOAD of money from SLI,as there are way too many gamers that like having dual Nvidia monsters if nothing else for the bragging rights. 4. And finally the ONLY way you can go Nvidia SLI is with an Nforce board,which even with the economic downturn is still a VERY popular seller,at least it was last time i looked at the sales numbers.

So I think it is quite safe to say that the article is BS. BTW,if you want to read the inquirer story about the canceled 790i boards and which manufacturers are involved,it is right here. But considering they had to set aside 150 million for repairs and replacements of mobile GPUs,to kill the Nforce which is the only way they can sell two high priced boards to the same customer frankly would be suicide. The last thing they would do is a move like this that would make them look weak after the mobile GPU fiasco. So even if they have come up with some way to add SLI to a single board by some kind of drop in chip most likely they'd wait until the whole mobile GPU mess has blown away. But as always this is my 02c,YMMV

Re:Ties between chipset and CPU

[Vanders]

If you notice, what you have is essentially four companies, who break down as:

1. Intel, who have their own CPU, chipset & video
2. AMD, who have their own CPU, chipset & video
3. Via, who have their own CPU, chipset & video
4. nVidia, who have their own chipset and video

Notice the odd one out? What do you think the logical long-term plan should be, if you were nVidia?

Re:If only

[techno-vampire]

I'd be happy if they'd just do a little debugging on their Linux drivers. After I bought an nVidia card for my Fedora 9 box, installed the drivers and got Compiz running, my system started hanging, sometimes several times a day. It was always when I was trying to come back from xscreensaver. After considerable googlemancy, I found an nVidea forum (Sorry, I don't have a link for it.) that had several hundred threads about screensaver issues with Linux. Apparently, there's a problem coming back from screensavers that do "line drawing." I don't know how true it is, or if it's been fixed, but I do know that ever since I set it to one screensaver only instead of random there hasn't been a problem. There's been an update, and I really should try again, but I haven't had the time for it as yet.

The word in the silicon valley...

[Anonymous Coward]

...is that NVidia is working on an Intel-compatible CPU.

My speculation:
They're probably shuffling resources internally, Their chipset designers might be working on the chipset to interface with their CPU.

You haven't heard this from me ;)

Re:The right thing to do...

[gujo-odori]

Simple: resources put to developing the chipsets are resources that are not being put to developing GPUs. I work for a company that up until a year and a half or so ago had a single product, which had then and has now the largest market share among vendors in that market. Then we launched a new product in a complementary market sector in which there is a dominant player. Sure, we hired new staff to work on this product and it has gained considerable traction in the last nine months and the dominant player in that market is probably starting to sweat :) However, some staff from our existing product line also moved onto that new product line and while development has continued on our core product and new features continue to be released and we continue to be number one in that market, we could have done more, faster if we were focusing on a single product line.

That doesn't mean nv was wrong to get into the chipset business. Certainly, my employer was not wrong to enter the complementary market sector we entered. Sales are going very well and there are great cross-sell opportunities between our two product lines. I can see us becoming the dominant player in this new market. However, that doesn't mean that entering a new market will not have an effect on your existing products, especially in the short term. I assure you it does.

The problem nv has in the chipset market, as I see it, is that they entered a very crowded market with a dominant player (Intel), which didn't really need another player, and they put themselves in direct competition with Intel, something they weren't when they only made GPUs. It got more complicated when AMD bought ATI, since that also put them in direct competition with AMD. If nv were to exit the chipset business they could make nice with Intel as a hedge against AMD. Thus, exiting the chipset business, even if they are profitable in it, could make business sense.

Sure, they deny it. Of course, a lot of these sorts of denied stories later turn out to mostly or wholly true. Time will tell, but I shan't be surprised if we see an announcement from nv in 3 months that they are leaving the chipset business. Who knows? They might even be able to sell some of their IP to Intel and recover some of their initial investment.